Ohio Prevailing Wage
Brief Information for Ohio Government Contractors
Ohio’s Prevailing Wage Law is defined in the Ohio Revised Code (ORC) 4115. It provides that prevailing wage contractors involved in government projects need to pay the prevailing wage workers. The code defines prevailing wage as the sum of the base hourly rate, life insurance, pensions, health insurance, apprenticeship programs, vacation or paid holidays, and other bona fide fringe benefits.
Ohio’s Prevailing Wage Threshold Requirements
There are four different threshold requirements for construction projects covered by the prevailing wage laws of Ohio. New public construction projects must have a total cost of at least $250,000 for the prevailing wage laws to apply. These projects, which involve roads, streets, alleys, sewers, ditches, and other works related to road or bridge construction, must have a total cost of not less than $84, 314.
Meanwhile, projects involving reconstruction, enlargement, alteration, repair, remodeling, renovation, or painting of a public structure must have a total cost of at least $60,000. Reconstruction, enlargement, alteration, repair, remodeling, renovation, or painting of roads, streets, alleys, sewers, ditches and other road or bridge-related constructions must have a total cost of $25,261 or more.
The Director of the Ohio Department of Commerce determines the threshold changes every even-numbered year thereafter. The change, whether a decrease or an increase, must not exceed 3% of the existing threshold.
Ohio’s Prevailing Wage Determinations
The prevailing wage in Ohio is determined based on the rates established by the local union collective bargaining agreements (CBA). For federally-funded public construction projects, Davis-Bacon wage rates may preempt the state prevailing wage rates.
Prevailing wage rates are updated once a week, and the Ohio Department of Labor sends out weekly updates to public authorities. These updates are based on the newly submitted CBA contracts. Contractors have 10 days to comply with the new wage rates.
Note that in Ohio, prevailing wage rates can be updated anytime.
Prevailing Wage Law Compliance
Public authorities must appoint a Prevailing Wage Coordinator during the life of a public construction project. The coordinator must set up and maintain certified payroll records for inspection. He must monitor timely filing compliance of the said records. He must also notify the contractor for any increase or decrease on the prevailing wage rates.
Let ARCHER JORDAN Guide You towards Compliance with OH Prevailing Wage Laws
ARCHER JORDAN is a third party benefits administrator, specializing in fringe benefits administration. By working with us, you will have the peace of mind that you are compliant with the prevailing wage laws of your state. Avoid the hassle of penalties, or worse, contract termination. Call us today at +1 888-745-0754!